I want to start hiring staff for my retail business. What should I know before I do this?

Employment regulations

If you have anyone working for you, you must register as an employer with the Department of Labour, and make contributions on behalf of your employees for Unemployment Insurance (UIF) and Workmen’s Compensation.

As an employer, you need to comply with the Basic Conditions of Employment Act, which regulates working hours, overtime, leave, deductions, etc. It also says that you must give employees their terms of employment in writing, and can only dismiss them using the correct procedure.

How important is your retail sales force?

Consumers often form their impressions of a shop by evaluating its sales force. So look for initiative and problem-solving skills in employees who can ring up repeat sales for your business and keep customers satisfied.

Whether selling shoes, computer equipment or plants, retail salespeople assist customers in finding what they’re looking for and try to interest them in buying the merchandise. They describe a product’s features, demonstrate its use, and show various models and colours. Therefore, you need to hire people with experience in your trade area–or at least people with a willingness to learn.

While these are the basic requirements for selling items, not all sales approaches are the same and not all salespeople will fit your line of goods or shop. For example, some sales personnel, particularly those selling expensive and complex items, need special knowledge or skills.

Selling automobiles requires explaining the features of various models, the meaning of manufacturers’ specifications, and the types of options and financing available to prospective buyers. Selling fine jewellery involves a certain level of expertise beyond that required for a costume jewellery clerk.

Depending on the type of shop and your policies, your workers may also handle returns and exchanges, wrap gifts, stock shelves or racks, arrange for mailing or delivery of purchases, mark price tags, take inventory, and prepare displays.

Neatness and artistic talent are very useful. Salespeople must be aware of special sales and promotions. They must also recognize possible security risks and thefts, and know how to handle or prevent such situations.

How many people is enough?

The quick answer is as many as it takes to ensure complete customer satisfaction. In reality, simple economics preclude this. There are as many answers to personnel needs as there are types of retail businesses. Nonetheless, here are a few points to consider in deciding how many staff members your business requires.

Size: A single-floor firm will need fewer staff than a multi-floor shop of the same size.

Type of product: The higher the price and complexity of the product, the more personal selling is required. More personal selling means more people.

Opening hours: The number of workdays and the hours of business may require shifts and flexible work times. Changes in holiday business will also affect staffing.

Patterns of trade: The concentration of sales at certain times of the day or on certain days of the week will affect staffing needs.

Sales density: The higher the sales per square foot, the more staff you’ll need.

Business location: A home-based business increases its chances of experiencing zoning problems with every employee it adds.

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

How do I best present an offer of employment?

Many business owners think that presenting an offer of employment is quite a simple, cut and dried task. You present the offer and the candidate can “take it or leave it!”. Until you actually really want that exceptional talent in your business and they’ve declined your offer for something as simple as; not enough leave days or a proposed start date that they may not be able to adhere to.

These are all minor problems that if given the opportunity to be voiced could be ironed out quite easily without either party feeling like they’ve sold their soul. Unfortunately however in many instances this opportunity is not given and businesses end up losing talent to their competitors. So how do you best present a letter of offer?

1. Know the persons expectations before presenting

It cannot be stressed enough how important it is that both parties know expectations and priorities.

What is more attractive to the candidate?

Is it a higher salary or more days leave?

Is it a company car or rather flexible working hours?

In an interview situation a candidate may not be too forthcoming with information on what salary they are looking for as they may feel intimidated or embarrassed.

In this case it’s a good idea to find out this information from their recruitment agent or ask them to email you after the interview with a range of salaries they would be happy to move for. You can then assess how this would fit into your budget.

2. Present the offer letter in person

Says Lisa Knowles; Head of Global Recruitment at Recruitgroup: “If you are using the services of a recruitment agent they will do this for you, they have built that relationship and trust with the candidate and will be able to offer an objective opinion. If not however it is best to meet in person and iron out any questions they or you may have.”

3. Implement an expiry date

A deadline of about 24 hours to a maximum of 2 days should be in writing on the letter of offer.

If the person is serious about the role they will not need more than this to think about and discuss their decision with their significant other.

Of course this is within reason and if longer is needed with justifiable cause then this can be negotiated.

4. Be flexible

Before presenting a letter of offer decide on how much room you have to manoeuvre. Presenting an offer is much like doing a dance, in the beginning you’re not quite sure of your partner’s style, you try to work together moving a few steps forward and a few steps backwards and standing on toes every now and then.

Eventually though you find out what works for both of you and you fall into step. If you need to change certain points of the offer then do so if you feel the candidate is worth it.

Communication and flexibility are key. Your business needs to move forward with top talent that are engaged, focused and happy. This can only be achieved they feel valued and satisfied right from the start. An offer letter is by no means purely about salary.

There are so many other factors that come into consideration when candidates choose to accept or decline an offer. It’s whether you’re willing to find out and listen to these that will help you either snap up or lose top talent.

Can staff training increase my turnover?

At last year’s Consumer Goods Council, Small Business Development Minister Lindiwe Zulu stated, “Almost 80% of SMMEs fail in the first year and only 50% of those last more than five business years”. It is hard enough keeping your business on track, and having to train staff can be costly.

With legislation now in place that makes this training obligatory, the pressure is immense.

How can I comply with the Employment Equity Act to train my staff?

The Employment Equity Act requires business owners to conduct staff training in the fields of HIV/AIDS, sexual harassment and cultural sensitivity. If these requirements are not met, an inspector from the Department of Labour may issue a fine of R500 000. These inspections can happen unannounced at any time.

How can one balance complying with this Act with the extra expenditure on staff training?

E-learning materials are customisable and can be edited for a targeted demographic of learners. Information can be adjusted if it changes, which in turn cuts costs of having to purchase new textbooks or print materials.

Using video, animation, text and audio inputs, many industries have discovered the value of making training interactive.

Video
For employees with low literacy capabilities, compiling video material allows for a dramatic reduction in reading for learners.

AnimationAnimation can be used to demonstrate complex problems and solutions. Able to provide lessons in its social context, it assists learners to retain large quantities of information.

Virtual Classrooms
A virtual classroom allows online interaction between students, teachers and peers. The major benefit of using this method is that it eliminates the need to travel to lessons.

Instructional Design
If your training needs are specific to your business, a customised e-learning solution can be designed and developed from start to finish to best suit your needs.

Blended Learning
Not everyone has adapted to using technology. Some learners still need human interaction to grasp a topic. If this is the case taking the route of blended learning, which combines digital with face-to-face, would be most appropriate.

AdaptabilityThere is e-learning material currently available on HIV/AIDS, sexual harassment and cultural sensitivity. The beauty of e-learning material is its adaptability to meet the needs of your workforce.

What personality traits and qualifications do head hunters look for?

What personality traits and qualifications do head hunters look for when trying to fill a top executive position for a firm?

First and most important is displaying that you are able to walk in a fellow executives ‘moccasins’ (empathy not sympathy). Long-winded executives that cannot make a point will never make it to the ‘real’ top. Communication skills, whether verbal or written, are critical.

Integrity and honesty are well received. Even well seasoned executives sometimes cannot answer this question “what is the biggest mistake you have made in your life and how did you rectify it?” Executives must also be aware of their development areas.

When it comes to qualifications, it very much depends on the industry. It is highly unlikely that the group CEO of a mining house would not hold a relevant mining degree from a reputable university coupled with an MBA. On a lighter note I cannot imagine the CEO of a well known wine, beer and spirits company not having a keen interest in wine tasting and not knowing the difference between a good or mediocre wine.

A solid basic university degree or a good B Tech degree from a technikon is only an entry point not a guarantee to success, similarly a prestigious MBA might raise your profile, but at the end of the day if it cannot be applied optimally in the work place then that prestigious qualification is only good on paper.

Work history and a proven track record are very important when considering candidates. Good executives are not ‘job hoppers’. Executives that have steadily climbed the ladder with the same employer is a positive. To change jobs just for better remuneration is a no go. Hard core competencies are non-negotiable.

It is not the number of years that is important, but the knowledge you have gained during those years you worked and what change or turnaround record you have to offer to a prospective employer. One can have ten years experience, but in fact only have one year repetitive experience.

Officially age should not matter, but it would very much depend on the retirement age policy of the organisation at the older age spectrum. The pendulum is returning to where companies would consider a 55 year old for executive level employment.

At the younger end of the scale it would depend on the position requirements. The determining factors being qualifications, competencies and most importantly emotional intelligence.